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Huatai Securities Co (601688) Fair Value & Analysis

Financial Services · CN · Market cap 186B CNY

HS Huatai Securities Co 601688 · SHG
Price¥19.49
Fair Value¥30.85
Upside+58.3%
Quality49/100
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Weak Growth
Highly profitable · 44.4% net margin
Low debt · negative free cash flow
2.74% dividend yield
Ranks above peers (10/12)
Wide moat 66/100
Evidence: High Range ¥23.14 – ¥38.57 Share as image

Fair value as of: Jul 15, 2026

From 17 valuation models · updated 23 days ago

Fair value updated Jul 15, 2026, revised from ¥38.11 to ¥30.85 (−19.1%) since Jun 26, 2026. Share price −5.6% over the past month.

Below-average quality, screening 58% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (¥23.14). The market is more pessimistic than our downside scenario.
  • Solid quality (49/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

¥25.56 ¥11.59 Fair Value ¥30.85 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range ¥11.59 – ¥25.56 · fair‑value band ¥23.14 – ¥38.57 · the ¥19.49 price screens below the ¥30.85 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 15, 2026.

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Analysis

Huatai Securities Co (601688) currently trades at ¥19.49, while our model-based Fair Value estimate is ¥30.85, implying the stock looks roughly 58.3% undervalued today. We read business quality at 49/100 (below-average quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Huatai Securities Co generated revenue of 39.5B CNY at a net margin of 44.4%. Revenue grew 45.0% year over year. It earns a return on equity of 8.6%. The balance sheet holds a net cash position of 314B CNY. Fundamentals as of Jul 15, 2026

Our scenario range runs from ¥23.14 (bear case) to ¥38.57 (bull case); at ¥19.49, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 24% below its 52-week high and 17% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 16% fair-value upside, at 58%, 601688 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income ¥19.20 ¥20.60 ¥22.93 76
ROIC Compounder ¥64.48 ¥66.94 ¥69.10 72
Gordon GGM ¥11.06 ¥22.99 ¥36.47 70
All 17 models by family
DCF Models
Owner Earnings ¥74.23 ¥96.26 ¥136.13 31
Earnings-Based
Graham-Dodd ¥12.34 ¥63.14 ¥87.25 54
Lynch FV ¥17.20 ¥24.57 ¥31.95 50
PEG = 1.0 ¥17.20 ¥24.57 ¥31.95 46
EPV ¥64.48 ¥66.94 ¥69.10 59
Dividend Discount
Gordon GGM ¥11.06 ¥22.99 ¥36.47 70
DDM Multi-Stage ¥11.06 ¥19.38 ¥24.13 61
Multiples
P/E Multiple ¥27.22 ¥36.30 ¥45.37 63
P/S Multiple ¥6.74 ¥8.99 ¥11.23 58
P/B Multiple ¥23.14 ¥30.85 ¥38.57 55
EV/EBIT ¥72.98 ¥80.74 ¥88.50 53
EV/EBITDA ¥67.96 ¥74.05 ¥80.14 54
EV/Revenue ¥55.99 ¥58.68 ¥61.38 43
Asset-Based
NCAV (Graham) ¥11.46 ¥15.36 ¥22.92 50
Economic Profit
Residual Income ¥19.20 ¥20.60 ¥22.93 76
ROIC Compounder ¥64.48 ¥66.94 ¥69.10 72
Growth Earnings
Growth-Adj P/E ¥25.30 ¥36.15 ¥46.99 68

Widest divergence: DCF Models (¥96.26) versus Asset-Based (¥15.36). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 39.5B CNY
Revenue growth (YoY) +45.0%
Net margin 44.4%
Return on equity 8.6%
Free cash flow −13.8B CNY FY2025
P/E ratio 10.1
More key figures
Operating margin 58.2%
EPS (TTM) ¥1.86
Dividend yield 2.7%
EPS growth (YoY) +34.2%
Net cash 314B CNY FY2024

Figures from reported company fundamentals · as of Jul 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 49/100

Of which business quality 53 · Market factors (momentum, volatility) 48

Profitability 34
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 70
Disciplined investing over empire-building
Low Volatility 76
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 32
Distance to the 52-week high (market factor)
Net Issuance 91
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Huatai Securities Co., Ltd., together with its subsidiaries, provides securities and financial services for individual, enterprise, and institutional clients in Mainland China and internationally. It operates through Wealth Management, Institutional Services, Investment Management, International Business, and Other segments.

Full company description

Huatai Securities Co., Ltd., together with its subsidiaries, provides securities and financial services for individual, enterprise, and institutional clients in Mainland China and internationally. It operates through Wealth Management, Institutional Services, Investment Management, International Business, and Other segments. The company offers wealth management services, including securities, futures, and options brokerage, financial products sales, fund investment advisory, and capital-based intermediary services; asset allocation; and margin financing, securities lending, securities-backed lending, and stock pledged repurchase services, as well as trades in stocks, funds, and bonds on behalf of clients. It also provides investment banking services comprising domestic and overseas equity financing, bond financing, and financial advisory; prime brokerage services, such as asset custody and fund services; research and institutional sales; equity securities and fixed income investments and transactions; and over-the-counter financial products and transactions services. In addition, the company provides asset management services, private equity investment, alternative investments, and commodities trading and arbitrage services; overseas business; fintech and digital services; and platforms for investment management and banking, FICC trading, cross-border and structured finance, equity derivatives, equity research and sales, and online securities lending. Huatai Securities Co., Ltd. was founded in 1990 and is based in Nanjing, the People's Republic of China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Huatai Securities Co reported revenue of ¥32.4B in FY2025 versus ¥40.9B in FY2021, a compound −5.6%/yr. Reported net income was ¥16.4B in FY2025, compounding +5.3%/yr from FY2021.

Growth Quality 24/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
32.4B CNY
Latest YoY
−19.4%
Avg. growth/yr (3Y)
+2.7%
Avg. growth/yr (5Y)
−0.1%
Avg. growth/yr (19Y)
+14.1%
Revenue −5.6%/yr
FY21 ¥40.9B
FY22 ¥29.9B
FY23 ¥34.9B
FY24 ¥40.3B
FY25 ¥32.4B
Net income +5.3%/yr
FY21 ¥13.3B
FY22 ¥11.1B
FY23 ¥12.8B
FY24 ¥15.4B
FY25 ¥16.4B

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Cite: Fair Value Calculator (2026). "Huatai Securities Co Fair Value". https://www.fairvalue-calculator.com/stock/601688

Peer Group

Capital Markets · 424 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 55 · Above median
Fair Value upside +58% · Top 25%
Return on equity (TTM) 9% · Above median
Return on assets 2% · Above median
Net margin (TTM) 44% · Top 25%
Operating margin (TTM) 58% · Top 25%
Revenue growth 45% · Above median
Dividend yield (TTM) 2.7% · Above median
Debt / equity 0.31× · Higher than median

Valuation Multiples vs Capital Markets median · lower = cheaper

P/E (TTM) 11.1× · Cheaper than median
P/B 0.90× · Cheaper than median
P/S (TTM) 4.72× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 11
FUTURE 100 · sector 91
PAST 34 · sector 31
HEALTH 84 · sector 93
DIVIDEND 55 · sector 37

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Capital Markets stocks, each showing price versus our Fair Value estimate (as of Jul 15, 2026).

Stock Price Fair Value vs Fair Value
Mirae Asset Securities Co 006800 38,750 KRW 31,645 KRW -18%
Meritz Financial Group 138040 117,000 KRW 87,706 KRW -25%
Korea Investment Holdings 071050 239,000 KRW 318,825 KRW +33%
NH Investment & Securities Co 005940 31,000 KRW 37,133 KRW +20%
Samsung Securities Co 016360 107,700 KRW 126,487 KRW +17%
Motilal Oswal Financial Services Limited MOTILALOFS ₹967.00 ₹299.65 -69%
Kiwoom Securities Co 039490 322,000 KRW 358,091 KRW +11%
SSI Securities Corporation SSI 24,250 VND 28,021 VND +16%
Bolsas y Mercados Argentinos S.A BYMA 313.75 ARS 120.22 ARS -62%
Daishin Securities Co 003540 26,200 KRW 46,660 KRW +78%

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Frequently asked questions

Is Huatai Securities Co (601688) overvalued or undervalued?
As of Jul 15, 2026, our model estimates a fair value of ¥30.85 versus a price of ¥19.49, about +58% (undervalued).
What is the fair value of 601688?
Our model-based fair value for Huatai Securities Co is ¥30.85 (as of Jul 15, 2026), built from audited fundamentals. The current price is ¥19.49.
What is the quality score of 601688?
Huatai Securities Co has a Quality Score of 49/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Huatai Securities Co (601688)?
Huatai Securities Co reported trailing-twelve-month revenue of about 39.5B CNY (latest available figure, as of Jul 15, 2026).
What is the net profit margin of 601688?
The net profit margin of Huatai Securities Co is about 44.4%, meaning it keeps roughly 44.4% of revenue as net income. Based on the latest reported figures.
Does Huatai Securities Co pay a dividend?
Huatai Securities Co currently shows a dividend yield of about 2.88% relative to its recent price (as of Jul 15, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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